THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, October 19, 1995 TAG: 9510190355
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 91 lines
Hampton Roads lags behind competing metropolitan areas in four key economic categories, according to a study released Wednesday.
The region's ``unfavorable'' historical comparisons - in employment growth, per capita income, earnings per worker and unemployment rate - came against the metropolitan areas that local economic development officials cite as top competitors for companies looking to relocate or expand, according to John W. Whaley, director of economics at the Hampton Roads Planning District Commission.
These cities share many common features - some are tourist destinations, seaports or military communities - as well as a common heritage and culture.
``They all compete for a share of the Southeast economic growth,'' Whaley said.
The competitor cities are Charleston, S.C., Charlotte, Raleigh, Richmond and Roanoke.
Hampton Roads also goes head-to-head against Atlanta; Baltimore; Columbia and Greenville in South Carolina; Greensboro; Jacksonville, Orlando and Tampa in Florida; and Memphis and Nashville in Tennessee.
Employment growth is the best way to monitor economic growth at the metropolitan level, and Hampton Roads has faltered in that category in comparison with its peer cities.
From 1969 to 1993, Hampton Road's employment grew 58 percent. Employment at all but one of the region's top competitors grew faster.
Raleigh topped the list with 133 percent growth in employment. Charleston had 91 percent growth, whereas Charlotte had an 81 percent increase. Richmond followed with a 67 percent job increase.
Only Roanoke had smaller job growth, with 51 percent.
Per capita income - which includes earnings, stock dividends, transfer payments and other sources - shows how much an individual makes.
Per capita income in Hampton Roads ($20,781 in 1993; 89 percent of the national average) has grown very little, Whaley said. While the region's per capita income rose 60 percent over the decade, it ranks at the bottom among its peer cities.
Raleigh topped the list in this category. Its per capita income rose 89 percent from 1983 to 1993.
Charlotte followed with 83 percent growth, Roanoke's growth increased 82 percent; Charleston's went up 77 percent; and Richmond's increased 74 percent.
Earnings per worker is one way to look at the change in individual income. Other ways are household income and median income.
Hampton Road's workers, whose earnings grew 49 percent from 1983 to 1993, haven't seen as big an increase as workers in competing cities.
Raleigh topped the list with 68 percent growth and Charlotte had 65 percent growth. Charleston's earnings per worker rose 53 percent; Roanoke's 57 percent; and Richmond's 58 percent.
The unemployment rate acts as an index of local job opportunities and is a factor of per capita income. A high unemployment rate can be good for employers looking to relocate or expand because it indicates that a substantial labor force exists.
A low unemployment rate can signal to prospective employers that most of the community's workers already have jobs. Those employers might have a harder time filling positions.
Hampton Roads' unemployment rate ranks among the highest of its peer cities. It hovered around 5.4 percent in the 1990s.
Baltimore, at 6.5 percent, had the highest jobless rate.
Raleigh, at 3.4 percent, had the lowest unemployment rate during the period.
Whaley says that Hampton Roads' economy has grown, even if it's not on par with its competitor metropolitan areas.
The region's labor force has expanded by 400,000 people. Income has increased by 37 percent since 1969. And unemployment, most recently at 4.6 percent, falls below the national average by a full percentage point.
Extensive defense-related downsizing, which hurt the region's shipbuilding and manufacturing sectors, and the lack of a diverse job base are two big factors contributing to the region's poor showing in comparison to its peer cities.
And there's hope for the future. Although the local economy mirrors the sound, but slow-growing U.S. economy, defense-related cutbacks are slowing and should become less of a drag.
Whaley said he expected the second half of the decade to improve for Hampton Roads. ILLUSTRATION: Graphic
When compared with competing metropolitan areas. HERE'S HOW:
[For a copy of the graphic, see microfilm for this date.]
SOURCE: Hampton Roads Planning District Commission
KEYWORDS: ECONOMY EMPLOYMENT UNEMPLOYMENT RATE PER CAPITA INCOME
COMPARISON by CNB